Deemed Export supply as per Custom but not as per GST

[JAIPRAKASH RUIA]

B2B supply to EOU where supplier is availing deemed export DBK benefit under FTP

For Recipient of goods it is normal DTA purchase under GST as no deemed export formality under GST completed like FORM-A.

Whether supplier to file such supply in table 4A or 6C of GSTR-1.

 

[Rajagopalan Ranganathan]

Sir,

Reporting requirements in GSTR – 1 and GSTR – 3B in respect of deemed exports.:

6C of GSTR-1. Deemed exports

Deemed export supplies are required to be disclosed in Table 6C of Form GSTR – 1. The registered dealer has to give invoice details and tax paid on such supplies.

GSTIN of recipient

Invoice wise details [No./Date/Value]

Shipping bill / Bill of export[No./Date]

Integrated tax[Rate/Taxable value/Amt.]

Cess

[JAIPRAKASH RUIA]

Sir, thanks for your valued reply. However this particular situation where the supply is deemed export as per custom act but not as per GST act.

Whether the supplier will file GSTR-1 as normal DTA sale with tax or as deemed export even if it is not deemed export supply under GST because neither supplier nor recipient completed the condition of notification issued under GST for deemed export.

[Rajagopalan Ranganathan]

Sir,

In that case the tax paid by the supplier can be availed as ITC by the recipient.

[KASTURI SETHI]

Definition of 'Deemed Export' provided under Para no.7.01 and 7.02 of FTP 2015-20 has to be followed. Section 147 of CGST Act is subject to FTP. Major criteria in deemed exports is that goods and services both do not leave India. Serial no 6 C of Table 6 of GSTR-1 is most appropriate column to be filled in instead of 4 A as also opined by Sh.Ranganathan, Sir.

[Shilpi Jain]

Yes. can disclose as deemed export. The requirement of furnishing Forms is as per circular 14/14/2017 14/14/2017. It has been generally held that mere procedural non-compliance should be viewed liberally it is not in dispute that sale is made to EOU. However, in case the recipient / supplier going for refund, procedural lapse could pose problem.

[KASTURI SETHI]

If refund claim (i.e. revenue) is involved, procedural lapse will be a stumbling block.

AI Summary

Deemed export reporting: treat supplies to EOU as deemed exports to protect input tax credit and refund rights.
Supplies to an EOU treated as deemed exports under FTP/Customs should be disclosed in GSTR 1 as deemed export supplies (GSTR 1 Table 6C) with invoice and shipping/bill of export details; tax paid by the supplier can be availed as input tax credit by the recipient, but failure to complete GST procedural formalities may not alter the substantive character of the sale while creating obstacles to refund claims and other revenue-sensitive remedies.